Can anyone, please enlighten me on debt management companies..I really need to find one asap. I've been doing research on those and came to the conclusion that the 'free' ones are not really free as they're funded by someone else. I'd like find one that actually deals with the creditors, on my behalf, not only give advice and I'd need to do it myself. I heard they charge a lot and would take you twice as long to pay your debts and you're paying half of your money to them. I'm in deep despair, confused & scared, it all feel like an awful nightmare..I guess it sounds familiar Thank you!

Hey Dukkha I can talk to you about a possible solution if some of your debts are unsecured, such as personal loans and credit cards debts etc. Now before you jump to any conclusions I am NOT recommending an IVA(Individual Voluntary Arrangement), neither am I suggesting Debt Management - although there's nothing wrong with reducing YOUR outgoing debts by up to 95%.

Due the amount of debt that is currently circulating in the UK, many individuals and companies are taking advantage of people. These Charlatans make HUGE commissions when someone takes out an IVA (Individual Voluntary Arrangement). They also make a HUGE commission when people spread their debts and make monthly payments like you are considering. Instead of reducing YOUR debt further - most ofthese companies take a monthly profit from YOUR monthly payments - Are you aware of this?

The truth is, in most cases the so called “legal document” or contract that YOU signed when taking out the loan or credit card does not comply with UK law. Consequently the contract is unenforceable or invalid – “So for that reason YOU could write off the debt completely, and NEVER have to pay back a single penny”.

All Fee charging companies do on the whole operate a similar structure to each other. Most do display on their website or paper work what their fees are. There are two fees you can expect to pay. At the start of your payment plan there will be a "Set up fee" and a "management fee" for taking over contact with your creditors each month. I would be wary of companies who do not offer this information freely. On average fees are your first two contributions and 17.5% of each payment thereafter for the term of your payment plan. Some companies do charge more (Up to 3and 4 months!!!) or add an admin cost to the initial "Set up fee"

Give CCCS a call. Their number is on their web www.cccs.co.uk. They are a great charity and will give you free advice in a 30-40 minute phone call. They have no charges for the owrk that they do. If you feel that you are not getting the quickest response from them, you can take their advice and act upon it as you see fit. That could involve the services of an Insolvency Practitioner or one of the debt solution companies freely found in the marketplace.

Did you have a chat to the CCCS Dukkha? Depending on your circumstances, you will normally have a choice of three different solutions. A debt management plan, individual voluntary arrangement (IVA) or as a last resort, bankruptcy. The right solution for you will depend on amongst other things, how much you owe, what you can afford to pay each month and whether you are a homeowner.